Securities and exchange commission

Three months ended June 30, 2011

	Fee-Based
	Student Loan and Guaranty Servicing				Tuition Payment Processing and Campus Commerce			Enrollment Services			Total Fee- Based			Asset Generation and Management			Corporate Activity and Overhead			Eliminations			Total
Total interest income	$	12			2			—			14			139,284			1,147			(655	)		139,790
Interest expense	—				—			—			—			49,269			2,440			(655	)		51,054
Net interest income (loss)	12				2			—			14			90,015			(1,293	)		—			88,736
Less provision for loan losses	—				—			—			—			5,250			—			—			5,250
Net interest income (loss) after provision for loan losses	12				2			—			14			84,765			(1,293	)		—			83,486
Other income (expense):
Loan and guaranty servicing revenue	41,735				—			—			41,735			—			—			—			41,735
Intersegment servicing revenue	16,793				—			—			16,793			—			—			(16,793	)		—
Tuition payment processing and campus commerce revenue	—				14,761			—			14,761			—			—			—			14,761
Enrollment services revenue	—				—			32,315			32,315			—			—			—			32,315
Other income	—				—			—			—			3,997			2,829			—			6,826
Gain on sale of loans and debt repurchases	—				—			—			—			—			—			—			—
Derivative market value and foreign currency adjustments, net	—				—			—			—			(12,531	)		(4,282	)		—			(16,813	)
Derivative settlements, net	—				—			—			—			(3,274	)		(248	)		—			(3,522	)
Total other income (expense)	58,528				14,761			32,315			105,604			(11,808	)		(1,701	)		(16,793	)		75,302
Operating expenses:
Salaries and benefits	24,731				7,249			5,931			37,911			709			4,261			—			42,881
Cost to provide enrollment services	—				—			22,140			22,140			—			—			—			22,140
Depreciation and amortization	3,436				1,326			1,658			6,420			—			349			—			6,769
Other	14,605				2,327			2,442			19,374			5,139			4,254			—			28,767
Intersegment expenses, net	1,060				1,118			959			3,137			17,047			(3,391	)		(16,793	)		—
Total operating expenses	43,832				12,020			33,130			88,982			22,895			5,473			(16,793	)		100,557
Income (loss) before income taxes and corporate overhead allocation	14,708				2,743			(815	)		16,636			50,062			(8,467	)		—			58,231
Corporate overhead allocation	(1,233		)		(411	)		(411	)		(2,055	)		(2,054	)		4,109			—			—
Income (loss) before income taxes	13,475				2,332			(1,226	)		14,581			48,008			(4,358	)		—			58,231
Income tax (expense) benefit	(5,119		)		(886	)		466			(5,539	)		(18,650	)		3,083			—			(21,106	)
Net income (loss)	8,356				1,446			(760	)		9,042			29,358			(1,275	)		—			37,125
Net income attributable to noncontrolling interest	$	—			—			—			—			—			—			—			—
Net income (loss) attributable to Nelnet, Inc.	$	8,356			1,446			(760	)		9,042			29,358			(1,275	)		—			37,125

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